Avon branches out

Retail stores give immediacy to new, old customers

But unlike other customers, Burr doesn't order from a local Avon representative and then wait weeks for her products to arrive. She shops at an Avon store in the Mall at Wellington Green on Forest Hill Boulevard in Palm Beach County.

"It's more personal when you go to the store," said Burr, who lives in Greenacres. "But you pay for the convenience."

New York-based Avon Products Inc., which celebrated its 120th anniversary last year, has come a long way since its founder, David McConnell, hired the first "Avon lady" to sell his products directly to the public.

The company's 5 million independent sales representatives worldwide are still selling in people's homes and offices, but the company has added other channels to strengthen its competitive position. Customers can purchase their favorite Skin-So-Soft or Anew products via the Internet, from a mall kiosk or at a bricks-and-mortar store. Avon has 13 kiosks and stores in South Florida, including the Wellington site and a store that opened recently in Fort Lauderdale.

"There's a trend in retailing to develop multiple channels or multiple ways to reach out to customers," said Barton Weitz, a marketing professor at the University of Florida and executive director of the Miller Center for Retailing Education and Research.

Avon is not the only national company trying new ways to reach customers. Dell Inc., which revolutionized the computer industry by selling direct to customers, has added kiosks at malls for customers who want to kick the tires of their products before purchasing. Apple Inc., which used to sell only to retailers or via its Web site, now has stores, too.

Denise Lewis opened her store in Wellington in May 2006, after selling from a kiosk at the Wellington Green mall for several years. Even though her shop faces the challenge of high overhead, her sales are about 25 percent higher than when she sold from the kiosk.

FOR THE RECORD - CORRECTION PUBLISHED SATURDAY, OCTOBER 13, 2007.An article on Page 1D of Friday's Business section incorrectly reported the location of Denise Lewis' Avon store in Wellington. The store is in Kobosko's Crossing shopping center along Forest Hill Boulevard, Wellington. In addition, the caption for the photograph was incorrect. Daniel Keller is the owner and Brett Combs, a customer.

"People like coming to the store," said Lewis, 55. "They like the individualized attention, and the fact that they can see everything and take it home."

Lewis pays about $50,000 in annual rent, a cost that her competition - home-based Avon representatives - doesn't have. To compete, she depends on volume and puts in long hours every day. She also changed her pricing when she moved to the store, charging closer to the suggested retail price rather than the prices in Avon's catalogs. And Lewis has a customer loyalty program to encourage repeat business. Customers who reach $150 in purchases get a $20 credit.

"People think they can open a store and they're going to be rolling in dough, but they don't realize they have to pay rent, sales tax and employees," Lewis said.

Avon started licensing retail stores in 1998 and now has 183 nationwide, including 24 in Florida, said Kimberly Williams, a senior manager at Avon. She said many Avon store owners have multiple revenue streams; they also sell online, do direct selling and build sales teams with multilevel marketing.

"Retail can be a challenging business," Williams said. "They really tap into every opportunity. It provides an excellent opportunity for entrepreneurs."

Daniel Keller is another entrepreneur linking his fortune to Avon products. In August, Keller and his partner Patrick Toner opened Bratt's Avon Shop on East Oakland Park Boulevard in Fort Lauderdale.

The shop, for which the two pay $550 a month in rent, is located in a commercial building tucked into a courtyard without an obvious sign on the road. Keller said people visiting the podiatrist or other tenants in the building often see the shop and stop in. He also attracts customers from his Web site and by inviting potential customers to special events at the store.

To compete against home-based Avon reps, Keller offers discounts to get customers in the door. But it's the convenience of being able to obtain products immediately that keeps most customers coming back, he said.

"People like the catalog but say that it's nice to go into a retail store," he said. "We carry all the hot items that people want and they can come in, touch and feel them and then walk out with them."

INFORMATIONAL BOX:

AVON CALLING

What: The company is expanding its reach by selling products online and in stores.